Teach Soap

* posted in melt and pour since people may read different forum topics*

Hi.
I'm getting ready for my first 'official' fair. When I did my kids fair I did not concern myself with taxes only because I was testing the waters and some proceeds were donated. I was happy with the results and decided to sign up for a local July 4th fair in the next city over. I feel I should appropriately cover the tax component of the product sale for this event in light of staying above board (and my own ethics) and frankly with California's crises I think more eyes will be watching in the back office since I have been able to use my resellers license to buy my soap base and colorant tax exempt (because I'm passing it on).

Given where I am at in this process - I will only take cash at the fair. I know, I may loose sales, but I'm just not equiped yet to get the credit side setup and I'm certain people will have a $5 or $10 bill in their wallet for an item that has a palatable price. Thoughts on which route to go with these examples?

Option 1. If a soap is priced at $4.50 - tax will be .44 (using the tax schedule) - total $4.94, my signage would indicate the price + tax - this will require me to carry lots of change and may be awkward to keep pricing simple. This is probably easier for tracking.

Option 2 - Working backwards I could charge $5.00 and the signage would just say tax included. For me it would break down to $4.56 + .44 tax (using the tax schedule it's still the same tax for this price) but the goal is getting the price to be an even dollar amount and that it is easier to digest. This probably will take a bit more effort for tracking at the end but I don't mind if it means keeping it simple for the customer.

My thought is to go with Option 2 just because it's a fair - I could see that on-line and a retail shop - price + tax = total when it is some odd number (and people are using their credit card) is something people get easier.

Thanks for any/all feedback

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http://www.asliceofdelight.etsy.com

Option 2 is a lot easier.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Thanks. for both posts on this topic. When I get at least one vote of confidence for my lengthy logic - it makes me feel like I'm going in the right direction.

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http://www.asliceofdelight.etsy.com

I agree with option 2. That is what I do and it is a lot easier. People don't like to carry around a bunch of change and it also makes making change easier.

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Haven

I always did option 2 as well.

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http://www.magichandsworkshop.com
http://www.magichands.etsy.com
http://www.magichandsworkshop.blogspot.com